On Dec 18, 2007, at 4:11 PM, Rakesh Bhandari wrote:
> In Twilight of the Nation State: Globalisation, War and Chaos Prem
> Shankar Jha talks today of a scissors movement of liquid capital
> accumulation and investment opportunities. "As a gale of creative
> destruction sets in, opportunities for the investment of liquid
> capital in new fixed capital equipment rises rapidly As the new
> equipment replaces the old, the rate of profit rises and increases
> the rate of capital accumulation. But each replacement of the older
> generation of equipment, and older management practices with the new,
> circumscribes the opportunities for further rapid increases in
> productivity. The rate of profit on future investments in fixed
> capital therefore begins to fall just as the rate of profit on
> existing capital reaches a peak. This creates an inexorable pressure
> for the mounting stocks of profit on past investment, ie. of liquid
> capital, to find new investment opportunities. That is when
> capitalism assumes it hegemonistic form and begins to reorganize
> large parts of the world." Jha, p. xix
I'm rushing out the door, so I can't look this up, but when was this written? How would it account for the 1995-2005 U.S. productivity acceleration?
Doug